Registered Capital in China: How Much You Need, When to Pay, and What It Means
- Roman Verzin
- Apr 26
- 4 min read
Updated: Jul 9
In China, every company must declare its registered capital.
This is not a tax or a setup fee. It’s a commitment — the amount you promise to invest in your Chinese company over time. It affects how much trust you get from banks, partners, and regulators. And for many founders, it also affects how they move money into China legally.
Let’s break it down.
What are the common amounts?
There’s no fixed minimum, but here’s what we usually see in practice:
Consulting: 100,000 to 300,000 RMB
Trading: 300,000 to 1,000,000 RMB
Manufacturing: 1 million RMB and above
Some industries — like finance, logistics, or medical — may have mandatory higher minimums.
Now the good news: you don’t need to pay this amount upfront. But you do need to fully contribute it within 5 years from the date of incorporation.
So don’t declare a random number just to look good. Declare what you’re actually ready to fund over time.
Why does registered capital matter?
Because of China’s strict foreign exchange controls.
If you want to transfer money into China, registered capital is the cleanest, tax-free method. When you send capital from abroad into your company’s designated capital account, banks treat it as investment — not revenue.
That means:
No VAT
No corporate income tax
No service contract needed
No need to prove delivery of services
Now compare that to other methods — like signing a service agreement between your Chinese entity and a foreign company (maybe even your own).
That’s allowed, but:
It’s taxed as revenue
You need full documentation (contracts, fapiao, delivery evidence)
It must match your business scope
And if you’re a “sensitive” founder — the bank may reject it
So if you’re going to put money in anyway — it’s smarter to do it through capital contribution.
Miànzi — and how capital shows credibility
In Chinese business culture, face (面子 / miànzi) matters.
Your registered capital is a visible number. Partners, suppliers, and officials all look at it.
It signals:
Whether your company is serious
Whether you plan to stay
Whether you’re reliable
If your capital is 100,000 RMB and your competitor shows 1 million — guess who looks more credible? That difference affects negotiations, trust, and even government support.
FDI approval: What foreign founders need to know
To transfer capital into China, you need to go through FDI — Foreign Direct Investment approval.
In theory, it’s simple:
File a form
Get approval
Send funds into your capital account
In practice, that only works smoothly if your country is not considered “sensitive.”
There is no official blacklist. But in reality, if you’re from certain countries like Russia, Iran, Nigeria, Lebanon and many others, banks and authorities may delay or block the approval process — with no explanation.
We’ve seen it firsthand. In one case, we couldn’t get capital approval for over a year. The company was fully compliant — but the legal rep was Russian. After changing the director to a Chinese citizen, the approval still took another year. Eventually, it went through.
What to do if you can’t transfer capital?
If you face issues with FDI, here are your realistic options:
Wait — until the political or banking situation changes
Show real activity, pay taxes, build credibility — and try again later
Reduce your registered capital (officially) if you can’t fund the full amount
These aren’t formal procedures you’ll find in public guidelines. But they’re common informal practices — negotiated between your local bank, tax office, and SAFE (China’s foreign exchange authority).
The key is to treat capital as a long-term issue — and work with local advisors who know how to resolve it gradually.
What if you don’t pay it on time?
The 5-year limit is now enforced.
If you miss the deadline:
✅ You’ll receive a public warning
✅ Your company may be listed on the “Enterprise Abnormal List”
✅ You may face penalties as shareholder or legal rep
✅ In serious cases — business license can be revoked
But don’t panic: 5 years is a long time. If your business is real and growing, you’ll usually find a solution before the deadline.
How to decide the right amount?
Simple: calculate how much capital your business will realistically need — before it becomes profitable. That’s your baseline.
If you also want to show credibility — and miànzi matters in your field — you can increase the amount slightly. But it still has to make sense for your setup and industry.
Key takeaways
Different industries have different expectations
Registered capital is tax-free — if structured properly
Transfers may be delayed or blocked if you’re from a sensitive country
Miànzi matters: capital affects trust
FDI approval is a real barrier for some — but there are workarounds
Define your capital as your actual investment plan
Need help with your setup?
At United Suppliers Group, we help founders from complex countries build legal, fundable business structures in China — even when banks say “no.”
From choosing the right capital strategy to getting FDI approval, we work with trusted local banks and government offices to make your structure work in practice — not just on paper.
Contact us if you need help planning or correcting your setup — or keep reading the guide.
Next: what kind of office your Chinese company really needs — and how it affects taxes, banks, and your ability to get VAT refunds.
